This paper presents the formulation, characterization, and in vitro studies of polymer composite material impregnated with naturally derived hydroxyapatite (HA) particulates for biomedical implant applications. Laevistrombus canarium (LC) seashells (SS) were collected, washed and cleaned, sun-dried for 24 h, and ground into powder particulates. The SS particulates of different weight percentages (0, 10, 20, 30, 40, 50 wt%)-loaded high-density polyethylene (HDPE) composites were fabricated by compression molding for comparative in vitro assessment. A temperature-controlled compression molding technique was used with the operating pressure of 2 to 3 bars for particulate retention in the HDPE matrix during molding. The HDPE/LC composite was fabricated and characterized using X-ray diffraction (XRD), field-emission scanning electron microscopy (FESEM), energy-dispersive X-ray (EDX), differential scanning calorimetry (DSC), and TGA. Mechanical properties such as tensile, compression, flexural, hardness, and also surface roughness were tested as per ASTM standards. Mass degradation and thermal stability of the HDPE/LC composite were evaluated at different temperatures ranging from 10 to 700 °C using thermogravimetric analysis (TGA). The maximum tensile strength was found to be 27 ± 0.5 MPa for 30 wt% HDPE/LC composite. The thermal energy absorbed during endothermic processes was recorded as 71.24 J/g and the peak melting temperature (Tm) was found to be 128.4 °C for the same 30 wt% of HDPE/LC composite specimen. Excellent cell viability was observed during the in vitro biocompatibility study for EtO-sterilized 30 wt% of HDPE/LC composite specimen, except for a report of mild cytotoxicity in the case of higher concentration (50 µL) of the MG-63 cell line. The results demonstrate the potential of the fabricated composite as a suitable biomaterial for medical implant applications.